Room00 Next Gen Hospitality has announced plans to invest more than €330 million in 2026 to accelerate its expansion across Southern Europe and into London for the first time. The company will add 20 new properties and 1,421 rooms throughout Spain, Italy, Portugal, and the United Kingdom as part of a broader strategy to reach 200 properties and 15,000 rooms in the coming years.
Expanding into London and Southern Europe
The investment plan, valued between €330 million and €420 million, will strengthen Room00’s position in key urban destinations. Around €50 million to €80 million will be directed toward five new London properties in Bloomsbury, Paddington, St Paul’s, and Victoria, adding about 220 rooms.
Italy will receive between €120 million and €140 million of the total investment, focused on Rome, Florence, and Milan. Four planned projects there will bring 334 new rooms. In Portugal, the company expects to invest €60 million to €80 million in Lisbon and Porto, adding roughly 217 rooms across three assets. Spain remains a core market, with €100 million to €120 million set aside for eight new properties in Madrid, Barcelona, Valencia, and Málaga, totaling about 650 rooms.
Investment Focus and Market Outlook
Supported by a €400 million funding round led by international investment fund Kings Street in 2025, Room00 is prioritizing the acquisition and repositioning of urban hospitality assets. About 80% of the capital will go toward acquiring and optimizing existing hostels and hotels, while 20% will target new developments in prime city locations.
CEO Ignacio Requena noted that approximately 80% of the planned investment is already in advanced stages, giving the company strong visibility for the year ahead. The planned projects are expected to add capacity for more than 750,000 potential guests annually.
A Growing Urban Hospitality Platform
Room00 positions itself as a next-generation urban hospitality group targeting millennial and Gen Z travelers through a mix of design, technology, and flexible, centrally located spaces. Its brands—Room00 Hostels, TOC Hostels, Room Select Hotels, and LETOH—serve varied guest profiles, from social hostels to boutique and lifestyle hotels.
Combining real estate investment with hotel operations and brand development, the company focuses on transforming centrally located assets into efficient, experience-driven properties. Room00 Next Gen Hospitality currently manages more than 65 operational or in-development assets and aims to expand this network significantly over the next four years.
